The short- run policy target currently used by the Bank of Canada is to set

Question

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The Bank of Canada currently sets a target range for the overnight interest rate as its short-run policy target. This interest rate is the rate at which banks and other financial institutions lend and borrow money overnight, and it affects a wide range of interest rates throughout the economy. By adjusting the overnight rate, the Bank of Canada can influence the overall level of borrowing, spending, and inflation in the economy. This target is reviewed and adjusted periodically based on the Bank's assessment of economic conditions and prospects.

The Short- Run Policy Target Currently Used by the Bank